SEBI Bars Avadhut Sathe: How Trainers Themselves Were Losing Money
SEBI has barred financial influencer Avadhut Sathe from providing investment services, citing his academy’s unauthorised advisory activities.
The Securities and Exchange Board of India (SEBI) has barred unregistered financial advisors Avadhut Sathe and Gouri Avadhut Sathe from offering investment-related services, according to an interim order issued on Thursday.
SEBI’s preliminary probe found that Avadhut Sathe Trading Academy Pvt. Ltd. (ASTAPL) was providing unauthorised investment advisory under the pretext of stock market education.
Avadhut Sathe is the founder of ASTAPL, while his wife, Gouri Avadhut Sathe, is the director of the academy.
The order noted that the academy used live market trading data for its online and offline classes, and charged substantial fees from participants.
The regulator also observed that the accused were disseminating misleading advertisements on social media. These included projecting unrealistic returns to lure investors.
“Preliminary examination in the matter indicated that ASTAPL/AS (Avadhut Sathe Trading Academy Pvt Ltd) was engaged in providing unregistered investment advisory and research analyst services under the guise of stock market education while using live market trading data during sessions. It was further observed that the ASTAPL/AS had collected substantial amounts of fees from unsuspecting investors,” the market regulator said.
“In addition, ASTAPL/AS was found to be disseminating misleading information and advertisements through social media platforms, aimed at inducing investors by portraying unrealistic returns from stock market activities,” added Whole Time Member of SEBI, Kamlesh C Varshney, in his interim order.
The finfluencer had collected over Rs 600 crore in fees from about 3.37 lakh investors, as per the SEBI report.
The regulator also noted that during the probe against Avadhut Sathe Trading Academy, it was found that the trainers, claiming to be stock market experts, were misleading investors. Despite promoting consistent profits, SEBI’s analysis showed all trainers and participants incurred net losses.
“The academy was publishing selective profitable trades of course participants/ investors and claiming that their course participants/investors consistently earn through trading and that the trainers at the academy are experts in the stock market. However, the analysis by SEBI showed that all such trainers and course participants/investors were in net losses and accordingly an ‘Administrative Warning’ dated March 1, 2024, was issued to ASTAPL/AS, cautioning them against misrepresentation and selective disclosures,” the regulator said.
According to Livelaw, SEBI found that Sathe and his academy incurred cumulative trading losses exceeding Rs 6.19 crore. These losses were recorded even as their promotional content claimed consistent success.
As a result, SEBI has barred Avadhut Sathe and his wife, Gouri Sathe, from the securities market. It also ordered the impounding of Rs 546 crore from him and his wife. The market regulator also directed their training academy to stop providing any investment advisory services.
